Disclosure Statement and Vote Cleared for Lift-Off
Judge Horan also approved Ligado’s disclosure statement and voting procedures, enabling creditors to vote on the Chapter 11 plan, which proposes converting $7.8 billion in debt into equity.
The plan notably preserves Ligado’s ongoing $40 billion lawsuit against the U.S. government, where the company claims unlawful spectrum takings by the Departments of Commerce and Defense. That litigation, focused on the government’s alleged interference with Ligado’s L-band 5G license, remains a significant asset in the restructuring.
The Fall and Rise of Ligado’s Spectrum Empire
Reston, Virginia-based Ligado Networks had once aspired to pioneer L-band 5G terrestrial infrastructure, leveraging a controversial 2020 license from the Federal Communications Commission. But friction with federal agencies citing GPS interference concerns stalled its momentum and triggered a cascade of financial collapse.
In 2023, Ligado filed suit against the federal government, and in January 2024, it sought bankruptcy protection. The reorganization now hinges on its deal with AST and potential windfalls from its constitutional claims.
Ligado CEO Douglas Smith previously told the court the company had invested “billions” in the network, only to face headwinds from government opposition.
